Popular, profitable, cashed up: LinkedIn’s unstoppable momentum
Last week LinkedIn announced their September 2012
results.
results.
Here’s my summary of the most significant and
relevant results:
relevant results:
Area
|
June – September 2012 (USD$ millions) |
June – September 2011 (USD$ millions) |
Period-to- period change |
Total revenue
|
$252.0
|
$139.5
|
+81%
|
– Talent solutions
|
$138.4
|
$71.0
|
+95%
|
– Marketing solutions
|
$64.0
|
$40.1
|
+59%
|
– Premium subscription
|
$49.6
|
$28.4
|
+74%
|
US revenue
|
$162.4
|
$94.0
|
+72%
|
Non-US revenue
|
$89.7
|
$45.4
|
+98%
|
Adjusted EBITDA
|
$56
|
$25
|
+124%
|
Global Membership as at end of the quarter
|
187 million people
|
131 million people
|
+43%
|
The
Talent (formerly Hiring) Solutions products (including LinkedIn
Recruiter, Talent Direct, Recruitment ads, Career Pages, Talent Finder,
Talent Pipeline and LinkedIn jobs) continue to be the star performer in
the LinkedIn product suite, growing it’s financial impact to 55% of
total LinkedIn revenue (up from 51% in Q3 2011).
Talent (formerly Hiring) Solutions products (including LinkedIn
Recruiter, Talent Direct, Recruitment ads, Career Pages, Talent Finder,
Talent Pipeline and LinkedIn jobs) continue to be the star performer in
the LinkedIn product suite, growing it’s financial impact to 55% of
total LinkedIn revenue (up from 51% in Q3 2011).
This is clearly the aspect of the business that
LinkedIn are pushing most aggressively with the recently introduced
Talent Pipeline product having the greatest revenue upside as a
compelling alternative Applicant Tracking System (ATS) for SME clients.
LinkedIn are pushing most aggressively with the recently introduced
Talent Pipeline product having the greatest revenue upside as a
compelling alternative Applicant Tracking System (ATS) for SME clients.
The Talent Solutions product is shaping as a real
category killer because it offers what no other ATS can offer;
self-service updating of candidate profiles. Every other ATS is burdened
by the huge handicap of every piece of ATS data having to be uploaded,
managed and updated by the owner of the ATS. This unmatchable difference
will be causing ATS shareholders, and their employees, to seriously
contemplate their future.
category killer because it offers what no other ATS can offer;
self-service updating of candidate profiles. Every other ATS is burdened
by the huge handicap of every piece of ATS data having to be uploaded,
managed and updated by the owner of the ATS. This unmatchable difference
will be causing ATS shareholders, and their employees, to seriously
contemplate their future.
Other significant LinkedIn developments that were
highlighted in the Q3 earnings report include:
highlighted in the Q3 earnings report include:
-
Redesigned and simplified Homepage aiming to deliver a more
social and relevant experience for members. Homepage traffic has
increased more than 60% since its introduction.
Introduced Notifications , which alerts members to activity
relevant to their experiences on LinkedIn. The rollouts of
Notifications and the new Homepage have resulted in record levels of
comments, likes, and shares. Comments specifically have increased
more than four times since June.
Launched Endorsements , a new and easy way for members to
recognise colleagues for specific skills. Since the introduction in
late September, LinkedIn members have generated more than 200
million endorsements, and the number of members editing their
profiles has more than doubled versus last year.
Revamped Company Pages were made available in early October
to more than 2.6 million organisations with an active company
profile on LinkedIn.
LinkedIn has revised its expected full year
2012 revenue range upward to $939 to $944 million from the prior
range of $915 to $925 million.
Scarily, the future for LinkedIn
looks to be one of cloudless blue skies, especially when you consider
that the LinkedIn war chest is overflowing; cash,
cash-equivalents and short term investments currently total USD$676
million, up from USD$387 million this time last year. That’s an
increase of just over $1 million per working day ,
every working day of the past 12 months.The LinkedIn leaders are focused
on growing the level of user engagement as a
key leg of LinkedIn’s strategy, and the focus of much of the product
development and content growth.This strategy is generating plenty of comment within
the recruitment industry, both in Australia and in the USA.Firebrand founder
and CEO, Greg Savage teed off at LinkedIn at the RCSA’s recent
International Conference reported by industry news service, ShortLis t,
under the headline
LinkedIn and SEEK are not our friends, says Firebrand boss.Over on US-based ERE.net, RecruitLoop Founder
and CEO, Michael Overell generated a storm of comments (41 and
counting) with his provocative article of two weeks ago
How LinkedIn Is Eating the Recruitment Industry.
Whatever your views on LinkedIn, one thing’s obvious;
they are clearly delivering a range of products and services that both
their customers want and the investment community supports.Ignore LinkedIn at your peril.Related articles:Scroll To Top